Watsco Inc Ranks High in Multi-Factor Investment Strategy

Watsco Inc demonstrates potential as a strong investment. The stock ranks 75% in a multi-factor strategy, indicating solid fundamentals and valuation, but it has areas needing improvement.

Date: 18-03-2025

AI Rating: 6

Watsco Inc (WSO) has received a promising score of 75% based on its fundamentals and stock valuation according to a multi-factor investment model. The score reflects the company’s performance in comparison to other stocks. While this rating does not reach the strong interest level (90% or above), it still indicates a positive outlook.

**Market Cap:** Watsco has passed the market capitalization criterion, suggesting the company has sufficient size and stability as a large-cap stock.

**Standard Deviation:** The stock also passed the standard deviation test, indicating lower volatility compared to its peers, which is favorable for investors seeking less risk.

**Momentum and Net Payout Yield:** Both the twelve-minus-one momentum and net payout yield were rated as neutral. This signals that there is neither strong positive momentum nor any negative signals from the net payout yield, which is helpful for potential investors to consider before making decisions.

**Final Rank:** The final ranking returned a fail. This suggests that while aspects of the stock are favorable, there are underlying concerns or weaknesses preventing it from achieving a full passing score. This could reflect issues like profit margins or other financial metrics not meeting certain benchmarks.

Stocks: WSO